Judge's Ruling Could Cost EMI Owner If Lawsuit Is Won
October 29, 2010 at 4:30 AM (PT)
In a setback, GUY HANDS would reportedly get no more than 25% of the $8 billion in damages he initially sought in his case against CITIGROUP over the 2007 acquisition of EMI, a judge has ruled. THE FINANCIAL TIMES reports "in an evening conference with the two sides' lawyers after dismissing the jury on WEDNESDAY, Judge JED RAKOFF said he would not allow a witness for Mr HANDS' TERRA FIRMA private equity group to testify about 'lost profits,' questioning the methodology behind a theory under which it had sought damages."
The ruling forced HANDS' attorney DAVID BOIES to withdraw his argument that HANDS should be compensated for having been "locked in" to the EMI investment while its value fell. That leaves a remaining claim for "fair market" or "make whole" damages that could still leave CITIGROUP liable for $2 billion.
The trial has featured some hot testimony, with CITIGROUP banker DAVID WORMSLEY was back on the stand in a MANHATTAN courtroom WEDNESDAY (NET NEWS 10/27), testifying that HANDS "had regrets that the acquisition was going to prove a bust shortly after it was inked in AUGUST of that year because aspects of the British company's recorded music business were performing surprisingly poor."
Last week, (NET NEWS 10/21), HANDS claimed that WORMSLEY "tricked him into overpaying for EMI, a 113-year-old music company, in a 2007 auction."